LN Mittal and Farallon Capital buy 13.33 per cent in Indiabulls subsidiary
01 Dec 2006
Mumbai: L N Mittal, founder of Mittal Steel and a wholly owned unit of San Francisco-based Farallon Capital, the world's largest investment fund, have together acquired a 13.33-per cent stake in Indiabulls Infrastructure Development Limited, the majority-owned subsidiary of Indiabulls Financial Services Limited, for Rs 447 crore, says an Indiabulls media communiqué.
The deal values Indiabulls Infrastructure Development Limited at Rs3,350 crore. After the new investment, the shareholding of Indiabulls Financial Services in Indiabulls Infrastructure Development Limited will go to 86.7 per cent.
This investment marks the next step in undertakings by Indiabulls Financial Services in the construction, development and real estate related segments, and marks the company's first major investment in the infrastructure segment.
L N Mittal has been an investor in Indiabulls Financial Services, the listed company since 2000 when he had originally bought 61.3 lakh shares representing approx 7.52 per cent stake in the company at an average price of Rs6 per share.
Around six months back Mittal had invested approx Rs90 crore to buy an 8.4-per cent stake in Indiabulls Credit Services Ltd, an unlisted subsidiary of Indiabulls Financial Services that focuses on consumer loans.
Farallon Capital has been an investor in Indiabulls Financial Services since the IPO of the company in year 2004.
